We often remark that it is more difficult to settle a case with an uninsured attorney than with an insurance company, and that taking money from an attorney’s pocket is complicated indeed.  Read through this NJ appellate case, which documents the time and legal fees spent trying to wrangle the last $ 800 from a $ 50,000 settlement, and you will agree with the Appellate court that this was a "procedural morass."

"William Ainsworth sued Richard Abrahamsen in legal malpractice for paying all settlement proceeds from a civil action to Dr. Jon DeMatteis, one partner in a car wash business, and none to Ainsworth, the other partner. Abrahamsen previously represented DeMatteis and his wife, Karen, in several transactions prior to the purchase of the car wash with Ainsworth. Both DeMatteis and Ainsworth filed suit a year after to rescind the transaction with the prior owner based on claimed misrepresentation of revenue and a tainted well. The lawsuit generated complicated legal activity including a foreclosure action and was further complicated by divorce proceedings between DeMatteis and his wife, who was also Ainsworth’s sister.

The legal malpractice filed by Ainsworth against Abrahamsen was settled and the complaint dismissed in 2001. The stipulation of settlement required Abrahamsen to make an initial payment of $5,000 to Ainsworth followed by periodic payments starting on June 10, 2001, of $800 per month for forty-six months with a final payment of $700 on April 10, 2005. The stipulation further provided that $2500 of the settlement was to be paid to Karen DeMatteis for her legal fees in the matter. William Gold, Esq. represented Ainsworth, and his firm, Bendit Weinstock, P.A., served as escrow agent for all parties "

"The issue on appeal illustrates the procedural morass created by overlapping motions and cross-motions filed with respect to an amount constituting approximately one-tenth of the settlement. "